Tax prep centers help residents with Earned Income Tax Credit

It’s a new year, and that means it’s almost time to settle up last year’s income taxes with the Internal Revenue Service. Few people enjoy filling out tax returns, but it’s a necessary evil for most, and the labor pays off quickly for those expecting a refund.

Yet every year, many lower- and moderate-income Bostonians miss out on what could be a substantial benefit: the Earned Income Tax Credit.

The EITC is a benefit for working people who have low to moderate earned income. The IRS income limits for EITC depend on marital status and number of children, but for eligible individuals and couples, the credit reduces the amount of tax owed and may also provide a refund. The EITC began in the 1970s under President Gerald Ford with the aim to encourage work and reduce the tax burden on working people with lower incomes. Since then, the refundable credit amount has increased several times, and for the 2014 tax year, the maximum benefit ranges from $496 for individuals or couples with no children to more than $6,000 for a family with three or more children.

“It’s one of the most significant anti-poverty pieces of the tax code,” said Mimi Turchinetz, director of the Boston Tax Help Coalition, formerly known as the EITC Coalition.

The coalition offers financial education and free tax preparation assistance at volunteer-staffed partner sites throughout Boston. It operates as a public/private collaboration between the City of Boston’s Office of Jobs and Community Services and local nonprofits, businesses and community organizations. One of the coalition’s aims is to help connect eligible Bostonians to EITC money.

A variety of circumstances may make people less aware of the credit or their eligibility for it, Turchinetz said, such as earning so little that a tax return is not required by the IRS; transitioning off public assistance and earning income for the first time; and dropping from full-time to part-time and suddenly having a lower income than previous years.

Approximately 60,000 Bostonians are eligible for the EITC, according to Boston Tax Help Coalition estimates, but some 15,000 may not apply for the money they are due.

The coalition wants to change that.

“Basically the coalition’s focus in the next couple of months is making sure low-income folks know about free tax prep and understand EITC,” said Turchinetz, who also is the City of Boston’s living wage administrator. She noted that while private tax preparation services would also alert people to EITC eligibility, using the city’s free assistance saves taxpayers fees and also offers other assistance and information to promote economic stability and asset-building for the long-run.

What’s more, for people who have been eligible for EITC in previous years but didn’t take advantage of it, it is not too late to file tax returns for 2011, 2012 and 2013 and claim the EITC. Staff at tax preparation sites can help people understand if they should file for prior-year credits.

The free tax assistance is offered at 27 sites throughout the city, including five in Dorchester, three in Roxbury and one in Mattapan. Some sites are open year-round, such as the Roxbury Center for Financial Empowerment in Dudley Square, while others operate only during tax preparation time, starting in late January. Services are offered in seven languages, Turchinetz noted, and plans are in the works for offering accommodations for deaf and hard of hearing.

For more information, call the Boston Tax Help Coalition’s general information hotline at 617-918-5275 or e-mail FreeTaxHelp@boston.gov. For a full list of all neighborhood sites and hours, see www.bostontaxhelp.org/2015-tax-sites.

The Boston Tax Help Coalition still is seeking volunteers for the upcoming 2015 season. Positions include tax preparers, financial guides and greeters. Interested people who can commit four hours per week should go to bostontaxhelp.org for more information and to sign up for training. Training sessions will take place throughout this month.